BHP considering LNG fuel for iron ore ships

According to the latest Reuters report, BHP will decide early next year who the recipient of an LNG tender launched by the company will be.

As one of the largest mining companies in the world, BHP has said it feels a responsibility to address its emissions. Indeed, both coking coal and iron ore generate huge levels of CO2 and BHP is a leader in both sectors.

In July 2019, the company decided a tender was the best way to evaluate the available engineering, tanks and refuelling expertise, which could assist with its transition to cleaner bulk shipping. The tender BHP finally launched was for LNG-fuelled transport to ship up to 27 million t – approximately 10% of the company’s iron ore – potentially reducing emissions by an estimated 25%.

Rashpal Bhatti, BHP’s vice president for maritime and supply chain excellence, told Reuters that LNG-fuelled tankers could be carrying the company’s ore by as early as late 2021. Bhatti continued to say that the vessel’s tanks could in time be suitable for hydrogen, as it become an increasingly viable low-carbon fuel. For the time being, LNG is the cleaner transition fuel of choice.